David finds he has one hour of time in the evening to allocate on the first day of the new semester.He can do one of two things.He can watch TV for one hour or he can open his economics textbook and read for an hour.The benefit of watching TV is 30;the benefit of reading about economics is 20.
-If David applies the cost-benefit principle accurately,he will
A) read about economics.
B) watch TV.
C) watch TV but fret that he should be reading economics.
D) read about economics but resent missing TV.
E) flip a coin,because the economic surplus is the same either way.

Question

Quizplus · Accepted Answer

The cost-benefit principle suggests choosing the option with the higher benefit. Watching TV has a benefit of 30, which is higher than the benefit of reading about economics, which is 20.

David Finds He Has One Hour of Time in the Evening